mineral resources

Core tips

The Guizhou Provincial Market Supervision Bureau has issued three regulations on enterprise-related law enforcement, clarifying that minor violations can be exempted from fines, and fines can be paid in installments for flexible law enforcement. For mining companies, this means that the tolerance for administrative penalties has increased significantly, but the bottom line of compliance still cannot be touched.

1. Mining enterprises usher in a new era of "no punishment for first violation"

In July 2026, the Guizhou Provincial Market Supervision Bureau issued three enterprise-related law enforcement regulations, the most attention-grabbing of which is the "no penalty for minor violations" system. For mining companies, this is a major benefit.

In what circumstances can I be exempted from penalty?

According to the new regulations, "no penalty for first offense" may apply to the following situations:

• First-time violation with minor consequences
• Correct illegal behavior promptly
• No safety accidents or environmental pollution were caused

In daily operations, mining companies may face penalties due to minor violations such as irregular license management and incomplete safety signage. After the implementation of the new regulations, such "inadvertent mistakes" are expected to be exempted from administrative penalties.

Lawyer’s point of view:"No penalty for first offense" is not a "gold medal for immunity from liability". Enterprises must retain evidence of rectification to prove that they have been corrected in a timely manner. Otherwise, the penalty-free treatment may be withdrawn at any time.

2. Pay fines in installments: financial pressure is greatly relieved

Mining enterprises require large investment and long cycle, and capital turnover is often the lifeline. Guizhou's new regulations make it clear that companies in real difficulties are allowed to pay fines in installments.

Applicable conditions for installment payment:

• Enterprises really cannot afford to pay in one lump sum
• Submit a written request and explain the reasons
• Provide corresponding guarantee or repayment plan

Practical suggestions:

• After receiving the administrative penalty decision letter, if no application for reconsideration or litigation is made within 60 days, the penalty decision will take effect.
• When applying for installment, submit financial statements and capital flows simultaneously to prove that the difficulties are genuine
• The installment period generally does not exceed 12 months

Lawyers remind: During the installment payment period, if the repayment is not made as agreed, the administrative agency may apply to the court for enforcement. It is recommended that enterprises fully evaluate their repayment ability before applying.

3. The bottom line of compliance cannot be touched: Which red lines are still strict?

Flexible law enforcement targets "minor" violations. Regarding the core red lines involving safety production, ecological and environmental protection, supervision intensity has not been reduced at all:

Behavior that will never be tolerated:

• Super layer cross-border mining
• Build before approval, build while approval is granted
• Concealing safety incidents and not reporting them
• Destructive mining of mineral resources

Lawyer Ying Ting reminds:

• Create compliance profile: Incorporate administrative penalty records into corporate management files to avoid repeated violations
• Active communication mechanism: When receiving notice of punishment, promptly communicate with the regulatory authorities and strive for a lighter punishment.
• Make good use of legal remedies: For obviously excessive penalties, apply for administrative review or litigation within 60 days

Conclusion

Guizhou's new enterprise-related law enforcement regulations embody the concept of "equal emphasis on law enforcement and services." Mining companies should seize the policy window period and improve their internal compliance systems, while keeping in mind that flexible law enforcement is an incentive and keeping the bottom line is fundamental.

If you encounter problems such as excessive administrative penalties or irregular law enforcement procedures, you are welcome to consult Beijing Yuting Law Firm.

Beijing Yingting Law Firm | Lawyer Liu Jingzhu